The Federal Reserve Bank of Kansas City reports farm incomes have stabilized, but remain lower than average.

The outlook for the Fed’s Tenth District, which includes Nebraska, shows a five-year farm income projection that increases slightly, but levels for 2017 were still expected to be 18 percent lower than the long-run average.

“There is definitely a lot of variation across regions, within regions, across farms,” Cortney Cowley, economist in the Omaha Branch, tells Nebraska Radio Network.

The Federal Reserve Bank’s survey of bankers shows fewer think farm incomes will decline in the short-term compared to a year ago.

However, Cowley says about 45-percent of bankers still remain pessimistic.

“Higher inventory and larger production over time has weighted on prices,” she says. “Because our region is so much more dependent on those commidities, I think bankers in our region might be slightly more pessimistic than bankers in some other regions.”

TransCanada says it will proceed with the $8 billion Keystone XL project.

TransCanada spokeswoman Robynn Tysver says the company has secured 20-year commitments for 500,000 barrels of crude oil a day.

“I’m calling it a benchmark moment,” Tysver tells Nebraska Radio Network. “In the last couple of months, we have received a route from the Nebraska Public Service Commission and today we’re announcing that we have secured the 20-year contracts, commitments from our shippers needed to move forward with this project. Today, the news is there’s a need for this project.”

TransCanada claims interest in the project remains strong and that it will look to secure additional long-term contracts for it.

Tysver says the company is contacting landowners along the approved route, securing the easements needed to build Keystone XL through Nebraska.

“It’s no secret we wanted another route,” Tysver says. “We had another route chosen, but the Nebraska Public Service Commission determined that what we’re calling the mainline alternative route is in the state’s best interest and we’ve accepted that decision.”

Tysver says, at present, the company plans to begin construction next year.

“That is our hope,” Tysver says. “There’s still a few more things left to do. So, we’re not saying definitively we’re going to start construction next year, but we are gearing up for it and we’re moving forward with the idea that we will proceed next year.”

Tysver declines to speculate whether the project will face further legal obstacles.

The PSC in November rejected the route preferred by TransCanada and, instead, approved an alternative route through Nebraska.

President Trump gave a presidential permit for TransCanada to complete Keystone XL after President Obama denied it a permit.

The southern portion of Keystone XL is in operation from Oklahoma City to oil refineries along the Gulf Coast in Texas. TransCanada proposes building a 36-inch pipeline from Alberta, Canada to Steele City, Nebraska. It would carry crude oil made from the oil sands in western Canada.

Tim Kenny, NIFA executive director, says the money will help smaller communities cover some costs of building projects.

“Affordable housing is where good jobs spend the night. If you don’t have affordable housing, good jobs can’t live there,” Kenny tells Nebraska Radio Network. “What we want to do is to make affordable housing for both low-income and workforce families available in the community, so the community can grow.”

Kenny says the money will go through community nonprofits, not directly to developers.

He says that means strong community buy-in is necessary.

“That’s the key ingredient to starting a culture of reinvestment of housing in your community,” Kenny explains.

So far, there’s a lot of interest from communities.

“There’s $7 million in the state fund. There’s $5 million in the NIFA fund,” Kenny says. “We have over 200 communities in the State of Nebraska who could be eligible, so I think time is of the essence.”

Nebraska has joined with most of the other states in a $45 million settlement with PHH Mortgage Corporation of New Jersey.

The settlement resolves allegations PHH, the ninth largest non-bank residential mortgage firm, improperly serviced mortgages between January 1st of 2009 through December 31st of 2012. Under the agreement, PHH must adhere to comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states.

“This settlement holds PHH accountable and will provide financial relief to affected Nebraska homeowners,” Attorney General Peterson said in a written statement released by his office.

The $45 million settlement includes $30.4 million in payments to borrowers. Payments also will be made to the state attorneys general who led the investigation and negotiations. A separate payment will be made to state mortgage regulators.

The Attorney General’s office reports about 175 Nebraskans are eligible for payments under the agreement. Borrowers subjected to PHH foreclosures qualify for a minimum $840 payment. Borrowers who faced foreclosures from PHH, but didn’t lose their homes will receive at least $285.

Residents in the northeast Nebraska town of Coleridge are working together to reopen their hometown grocery store.

Regg Pehrson is heading up the effort to reopen the store and says when it closed last spring, residents were forced to drive much longer distances for their necessities.

“Everybody was having to travel out of town ten or 15 miles to get groceries,” Pehrson says. “They weren’t able to run down at 5 o’clock when they were missing a gallon of milk or something to make supper. We’ve got some older people that it’s hard for them to get out of town. If we can get the grocery store back going again, I think we’ll have good support from them.”

After a community meeting was held in early December, Pehrson says they got financial commitments to open the store.

“For right now, we’re up to about 60 commitments and we’ve still got people coming in,” he says. “We’re hoping we can reach our goal so we don’t have any loans against the grocery store when we’re done.”

Pehrson says they’re confident they will be able to keep the store running for many years to come.

“The people will support it and there should be plenty of cash flow to keep it going,” he says. “Compared to what we’ve had and what the business has done in the past, we should be able to make it work. We had a little trouble getting suppliers but we’ve got those lined up. We have a couple of store managers I’m really excited about.”

Lori Paulsen, executive director, says spraying 2-4-D near a vineyard can be devastating.

“It can drift up to ten miles, especially if it’s sprayed on a windy, hot day,” Paulsen tells Nebraska Radio Network. “It can take the entire crop of a vineyard, or it can take the vines out completely.”

The Association is educating 2-4-D users in an effort to keep vineyards safe.

“If herbicide drift comes to a vineyard and it takes out those vines, they can’t re-plant until the next year,” Paulsen says. “Then it’s another three to four years before you can harvest grapes again.”

Paulsen some grape growers have left the business after a herbicide destroyed their vineyard.

“We hope that people can avoid spraying (2-4-D) during our pollination period, which is early May until the middle of June,” she says. “That makes a big difference in whether you take out a vineyard or not.”

A relative new-comer to Nebraska politics is running for governor as a Republican.

Krystal Gabel says she is running a grassroots campaign based on government transparency, prison reform, and job creation.

“Nebraskans really want an executive leader who serves, protects, and who respects their rights and freedoms as granted to them by the Constitution,” Gabel tells Nebraska Radio Network. “I think a lot of people feel like they’re not listened to, so I want to be an empathetic and compassionate leader who is available, who speaks frankly and honestly and transparently to the public.”

Gabel, a freelance writer/editor from Omaha, has run for local offices, but says there is a greater need to work on statewide issues and run a grassroots campaign.

“We don’t have to have money — you don’t have to spend $52 million of your family’s money to be elected as an executive leader,” she explains, “so that’s why I’m running — to give people an option.”

Gabel says industrial production and processing of hemp and medicinal marijuana can spur the state’s economy.

“We’re not talking about getting high here. We’re talking about healing and putting money back into our pockets.”

She also wants to reform state government.

“Nebraskans also want prison reform. They want to see their money being spent, instead, on education and rehabilitation programs for people who are addicted to opiates,” Gabel says.

Gabel will face Governor Pete Ricketts in the GOP Primary next May.

“I’m getting my name in that hat, because I truly believe I can beat Governor Pete Ricketts,” she says. “He received approximately 58,000 votes to win the Primary last time. I believe I can get more votes than that, so that’s why I’m challenging him.”

She says she has been talking with Libertarians, Independents, and Democrats about registering as a Republican to vote for her, and she is encouraging non-voters to get registered and support her campaign.

Her campaign is accepting small donations from individuals and small business owners.

“I’m very conscious of who I’m accepting my money from, because I want to support workers, I want to support small businesses,” Gabel explains. “I’m not accepting corporate donors. I think that is part of why Governor Pete Ricketts got to spend $52 million to win a seat that only pays $105,000 a year.”

“We’re really hoping that folks will come up with creative projects in a bunch of different areas,” Nobert tells Nebraska Radio Network, “so that we can get some on the ground data collected or demonstrations of how people are using biochar and find out if it was successful for them.”

Nobert says grants of up to $5,000, offered through the Great Plains Biochar Initiative, are available to individuals, businesses and organizations to either produce or use bio-char.

Nobert says it is mostly being used in small-scale garden operations now in Nebraska, but she says it has many more uses.

“Biochar can be used for a soil amendment,” she says. “It can be used in water filtration, odor control in feed lots and poultry operations.”

NFS is pushing for biochar made from wood.

“Biochar is a really good outlet for the eastern red cedar. We’re going to have a lot of ash trees coming down with the discovery of the emerald ash borer, so it’s a really good opportunity,” Nobert says.

The Nebraska Chamber of Commerce and Industry is pushing for tax relief during the upcoming legislative sesssion.

Jamie Karl, the Chamber’s vice president of public affairs and policy, says the state’s individual income tax rate is too high.

“If we were able to lower Nebraska’s high income tax rate of 6.84% to just below 6%, we would move from the nation’s 15th worst individual income tax to roughly somewhere in the middle,” Karl tells Nebraska Radio Network. “That would definitely make Nebraska more competitive.”

Karl says the Chamber also wants to see the corporate income tax rate lowered from 7.81 percent to match the top individual income tax rate.

Among neighboring states, only Iowa has a higher corporate rate, while South Dakota and Wyoming have none.

“After this major rewrite of federal tax code, all 50 states could be having a state tax policy debate this year,” Karl says. “To be competitive, Nebraska is going to have to address that high tax burden at both the corporate level and individual level.”

Colorado’s corporate income tax rate of 4.63% would be the third other neighboring state to be lower than Nebraska’s, if it moved to a 6% rate.

Karl says even with the recent decline in state revenue, tax relief makes sense.

“That’s a steep hill to climb, when you’re facing a downturn in revenue, but if you get more business activity, more people moving into the state, that is going to be reflected in more state revenue,” he explains.